Palm Beach has emerged as one of the hottest real estate markets right now, says CNBC. The area offers exclusivity, beaches, relatively lower taxes, and luxury. High-end buyers flooded the market last month as contracts increased by 62%. The number of homes for sale seems to be dropping as a result. Compared to last year, there are 79% fewer homes for sale, bringing Palm Beach’s housing inventory down to a five or less month supply. Southern Florida is experiencing a booming market in general right now, Miami’s home prices jumped 42% in the quarter as a result.
In Miami, luxury home prices surged 42% in the quarter, with the average sale price hitting $2.8 million. Average home prices in Ft. Lauderdale increased 16%, and they were up 11% in Boca Raton.
Brokers say that while some of the demand is tied to the coronavirus pandemic, as families fled big cities for more tropical homes with yards close to the beach, the growth is also tied to longer term, structural changes. The wealthy in the Northeast are growing older and looking to retire. More are heading to Florida. The pandemic has also led to a wave of younger families moving to Florida — at first to escape New York but now to stay and put their kids in local schools.